Description

Global Aviation Alternative Fuels Market 2016-2020 Description

Alternative fuels or biofuels have been acknowledged as the primary option that can facilitate the aviation industry to achieve its targets. After a multi-year technical review from aircraft and engine manufacturers and oil companies, biofuels were approved for commercial use, in July 2011. Since then, some airlines have experimented with the use of biofuels on commercial flights. Biofuels produced from biomass such as algae, Jatropha, and Camelina can reduce the carbon footprint of aviation fuel by up to 80% over the lifecycle of an aircraft. Of late, the focus of the aviation industry has shifted to the sustainable second-generation biofuels that do not use food crops as feedstock nor are major consumers of prime agricultural land or fresh water.

Technavio’s analysts forecast the global aviation alternative fuels market to grow at a CAGR of 4.29% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global aviation alternative fuels market for 2016-2020. To calculate the market size, the report presents the market landscape and a corresponding detailed analysis of the five major vendors operating in the market, classified on the basis of their sales, product innovations, and geographic coverage.

The market is divided into the following segments based on geography:

Americas

APAC

EMEA

Technavio's report, Global Aviation Alternative Fuels Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors

GE Aviation

Rolls-Royce

SkyNRG

Swedish Biofuels

UOP

Other prominent vendors

Amyris

AltAir Fuels

Byogy Renewables

Fulcrum BioEnergy

Gevo

Market driver

Initiation of new biofuel projects.

For a full, detailed list, view our report

Market challenge

Sparse availability of feedstock for biofuels.

For a full, detailed list, view our report

Market trend

Developments in BRIC countries.

For a full, detailed list, view our report

Key questions answered in this report

What will the market size be in 2020 and what will the growth rate be?

What are the key market trends?

What is driving this market?

What are the challenges to market growth?

Who are the key vendors in this market space?

What are the market opportunities and threats faced by the key vendors?

Commenting on the report, an analyst from Technavio’s team said: “One of latest trends in the market is evolution of bio-ports. With the fluctuating global ATF prices along with the increasing pressures for GHG emissions reduction, biofuels have been considered as an appropriate substitute to achieve carbon-neutral growth. Although the present-day aircraft are 70% more fuel-efficient than the traditional ones, they consume approximately two billion barrels of jet fuel annually and result in high carbon emissions. Since, the aviation biofuels are both expensive and rare to find, their continued use is still a question.”

According to the report, one of the primary drivers in the market is growing GHG emissions. CO₂ emissions are significantly increasing year-over-year. Combustion of fossil fuels (such as natural gas, coal, and oil) for energy, transportation, and certain industrial processes are some prominent examples that generate CO₂ emissions. In 2014, the US in particular, emitted 5,406 million metric tons of CO₂ into the atmosphere. The primary source of CO₂ emissions in the US, China, and the EU-countries are the electricity and transportation industries. It is estimated that if the world adopts the smart energy (biofuels, solar, water, and wind energies) technologies, then CO₂ emissions could be reduced by 15% globally by 2020.

Further, the report states that one major challenge in the market is sparse availability of feedstock for biofuels. Biofuel can be synthesized from different feedstocks. Also, the quality of the biofuel is very much dependent on the feedstock used in the making of the fuel. A primary concern for the market is the scant availability of the required feedstock and the time required for the processing of biofuels.